Quote:
Originally Posted by CoolMikey
"The Contestability of the market. If barriers to entry are low then the incumbent firm is unlikely to be dominant even with a high market share because new firms can enter if profits are high."
There are dozens of competitors in the search space showing that "barriers to entry are low", consumers can easily switch to another search engine, etc, so I wouldn't agree they have "dominant" position.
Facebook is a 100x better example of "dominant". "Network effect" prevents competitors from easily entering the market, users can't easily switch to another social network, because the whole point is that friends need to be on the same network, etc.
Google really has very little power, I can switch to bing or some other search engine within 2 clicks and never visit google again, so I don't see how they are "dominant".
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https://en.wikipedia.org/wiki/Europe...e_of_dominance
More reading for you..
First it is necessary to determine whether a firm is dominant, or whether it behaves "to an appreciable extent independently of its competitors, customers and ultimately of its consumer."
Under EU law, very large market shares raise a presumption that a firm is dominant, which may be rebuttable. If a firm has a dominant position, because it has beyond a 39.7% market share then there is "a special responsibility not to allow its conduct to impair competition on the common market"
With over 90% no one can doubt they are fucking dominant, jesus